officially, publicly now. jon: thank you. jenna: thanks for joining us, everybody. jon: "america live" starts right now. megyn: fox news alert, breaking news on the obama cabinet. as we just heard from the attorney general on possibly resigning as it is out with the old, in with the new, apparently, in obama administration 2.0. welcome to "america live," everyone, i'm megyn kelly. just two days after americans gave president obama a second term, we are learning that big changes could be on the way at top-level cabinet positions. secretary of state hillary clinton already said she has plans to leave, and now reports say that treasury secretary timothy geithner may be out, and moments ago the attorney general, eric holder, telling a group of law school students that he does not know if he's going to stay on the job. >> that's something that i'm in the process now of trying to determine. um, the first step has already occurred, that the president has been reelected. um, and i have to think about

can i contribute in a second term. i have to, obviously, talk to him, speak to members of my family, in particular one who i'm married to, and then really ask myself the question about, you know, do i think that there are things that i still want to do, do i have some gas left in the tank? it's been an interesting and tough four years. so i'm really, i just really don't know. megyn: interesting and tough. chris stirewalt is our fox news digital politics editor and host of "power play" on foxnews.com live. that sounds like you. interesting and tough. >> interesting and tough maybe, but as interesting and tough as things may be, you don't talk like that unless you're probably leaving. megyn: he's gone. >> i'm staying. megyn: what cabinet member ever says anything than i'm devoted to the cause, but then they start talking about how they want to have chats with the family and it's been a tough four years, good-bye, right? isn't that express washington code for the rest of us of i'm

outta here? >> that is the warm-up before the departure, and in the case of attorney general holder, it is a good time for him to go because there are still lingering questions about the fast and furious gun-running sting that resulted in several deaths, there are these other questions out here about different investigations that house republicans have had. he has been a controversial figure throughout, and this would probably be, having served four full years, be a good time to let the president have a reset at the department of justice. megyn: sort of a natural transition point. he's been a very controversial figure, eric holder. and in his defense, that job tends to in modern-day america invite a will the of criticism. i mean, we saw it with ashcroft, we saw it with gonzales, mukasey didn't really have it as much, but then, you know, holder, i mean, it's a tough job if you want to do it. who is he likely to be replaced with though? because that job in particular, we're going to get to the other

suspected vacancies coming upon us, but that job in particular will tell us a lot about what president obama's going to do in this second term, whether he moves to the left, moves to the right -- center, i should say. >> well, the deal for the attorney generalship and, as you say, this is a lightning rod position, and by choosing eric holder for that job, the president was sending an express message to his base that he was going to embrace very liberal policies and use the department of justice as a way to sort of pursue the social justice ends as it relates to issues of race, gender, sexual preference and all of those things that were important to the president's base. so the question now is how do you find somebody that can get approved in the senate that meets that. the president doesn't come with the same sort of -- even though the democrats have a slightly larger majority -- he needs to find somebody that will not be controversial. he needs more like that knew case is si figure, somebody who's been a judge, a little lower profile, a nice resumé

that you can put forward and say this guy will be a good caretaker. megyn: he still has all the top deputies, so don't expect any radical changes over at the doj, but it will be interesting to see who he puts in that position. want to talk about hillary clinton. she's outta here. she's got to start dusting off the campaign gear already? [laughter] >> well, it's never too soon. she says, no, but for a lot of democrats, they believe she's their best hope in 2016, and it takes a long time to run for president now, a very long time. megyn: oh. such a long -- >> we don't need that again. megyn: bret the other night was already talking about the start date for the iowa caucuses, my head almost exploded. >> it's too much to think about this week. but if you're hillary clinton or anybody -- look, marco rubio's making his first trip to iowa very soon. megyn: i know. who's likely to take over her job? some say john kerry, some have speculated about susan rice, the

embattled u.n. ambassador, stepping into hillary clinton's role. >> that sounds kind of farfetched, but who knows? anything's possible. certainly, the problem susan rice would have is because of what she said about the successful raid about islamist militants on the u.s. diplomatic outpost if benghazi being the fault of a youtube video, that was very bad for her. she would compound a problem that the departure of hillary clinton would help alleviate. state department's been really under close scrutiny because of the response to this. the lack of preparation for it, for the attack and the response thereafter, that's something they would like to get away from. putting susan rice in there would intensify it. megyn: last but not least, quickly, if geithner goes, i mean, that's an important job he has. and who is likely to fill that role, and how would it change americans', you know, day-to-day lives? >> well, what the president has in tim geithner's departure is an -- or assumed departure is an

opportunity to send a message to the business community that he heard their complaints and is concerned, shares their concerns about issues like debt and the stopgap way that we're running the government these days. so there you'd look for somebody with a bernanke-style business credential, somebody who is, you know, they got geithner from the new york federal reserve, but somebody from that world who will be reassuring to markets who are looking for signs that he's going to be a moderate or moderate to some degree when it comes to fiscal policy. megyn: yeah. you could drive that stock market drop we saw yesterday up depending on the choice. >> exactly. megyn: all right, tough but interesting, see you soon. [laughter] >> you bet. megyn: well, president obama may have won re-election, but we still don't know much, know by how much. that is because they are still counting the ballots down in florida. as of this morning just six-tenths of a percentage point separated the president and governor romney. most of the remaining ballots

are from miami-dade county because there was a last minute wave of absentee ballots that have yet to be processed. if the president wins florida, it will increase his electoral count but not change the outcome of the election. after months of campaigning and hundreds of thousands of phone calls, washington looks very much the same. next hour, the same. how many segments, how many dollars, how many discussions? the same. next hour we're going to speak to karl rove to explain what he really thinks happened on tuesday. how did the republicans lose? and we will get his thoughts on that a couple days after. ♪ megyn: a major setback today for millions in the northeast still recovering from the last week's devastating hurricane sandy. powerful winds, rain and snow -- i mean, it was blizzard conditions around here in many places last night -- knocking

out power to many who had only recently gotten it back. in new york and new jersey alone, 60,000 people are again in the dark. some transit service also taking a hit. the long island railroad, some call it the wrong island failroad, suspended all service due to weather. and airlines canceled at least 1300 u.s. flights. mean time, new stories of unbelievable hardship are starting to emerge again. this is video -- look at this. look at that shot in staten island, new york. folks there cannot catch a break. snow now covering piles and piles of debris and garbage that they've been waiting for someone to take. we're told the smell of sewage is getting stronger and that face masks are now being handed out to help people deal with it. signs like this also popping up. this one reads: obama, fema, help! folks are angry and frustrated after learning that fema offices closed yesterday due to bad weather. i say the fema offices closed due to bad weather.

and that's not all. even more people are now being displaced. the city reportedly placing yellow warning signs on homes telling folks to get out. their homes are literally closed to them. just this morning we learned that new york governor andrew cuomo, listen to this, fired this guy. it was cuomo's emergency management direct. why was stephen kerr fired in the midst of a crisis? because he allegedly diverted a crew from helping storm-ravaged victims to his own driveway because there was a fallen tree. good-bye, stephen, take care. megyn: word coming out of the middle east today that iran is set to hold massive military drills this weekend. 8,000 troops will take part in the war games and will show off ann's jet fighters -- iran's jet fighters, drones and defense fighters. leland vittert has more. >> reporter: megyn, we're

still trying to figure out whether these drills by the iranians are meant to drum up support, rally the troops if you will, or scare the rest of the region. so far we know about 8,000 troops participating in this, and it will take up much of eastern iran starting this weekend and going all the way in to next week. normally, we don't see anything new in terms of weapons during these drills, but it certainly serves as a warning about the kinds of air defenses that anybody who would be attacking iran -- perhaps israel -- would face. they've already tested their missiles to show what a retaliatory strike on tel aviv would be. these drills also have the intended consequence of raising the price a little bit. the iranians are saying, okay, it's going to cost more if you bomb us, therefore, if we come to the negotiating table, we want more. and this all has to be looked at in the prism, if you will, of u.s./israel relations after the elections here. the prime minister here in israel, prime minister netanyahu, and president obama

have a very icy relationship. the prime minister all but endorsed governor romney in the past election, and there's been a lot of fear here that now a second term president obama will take a much tougher line against israel when it comes to iran, when it comes to the palestinians. there has been some vocal, hostile, very negative reaction here by israeli politicians to president obama's re-election, and there's a lot of anger at the prime minister for making israel and the united states' political issue duringtisan the presidential election. and just to give you a kind of sense of how it looks from here, somebody who's very keyed in this to the u.s./israeli relationship told me that president obama is going to eat, quote: grilled bebe for lunch coming inauguration day. megyn: as leland just mentioned, israel's prime minister warned that his country will go it alone against iran if need be. that's what's caused some of the dust-up. that raises new questions about whether israel thinks america

will have its back and what it's likely to do. ambassador john bolton gives us a postelection guide to reality in the middle east. plus, new details today on a plane crash last summer. a story that starts with a bizarre series of events and ends with a sky west jet in the side of an airport. and a report on a big drop in sales at mcdonald's adding to troubles ahead for the american economy. up next, stu varney looks at yesterday's massive wall street selloff and why investors are scared about more than just that so-called fiscal cliff. ♪ it's time ronald joins his friends, but who will take pics of them? ♪ just like one big family, watch the birdie and you'll see; ♪ ronald, ronald mcdonald. when you have diabetes... your doctor will say get smart about your weight. that's why there's glucerna hunger smart shakes. they have carb steady, with carbs that digest slowly

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megyn: fox news alert, troubling

new signs about america's economic future with a big warning from giant employer mcdonald's. it comes just a day after we saw dramatic postelection selloff on wall street yesterday. as we investigated, we found signs of worry about big segments of our economy, and mcdonald's is reporting the first monthly drop in nearly a decade for the world's biggest hamburger chain. stuart varney joins us now. mcdonald's, i mean, they're like the cockroach, they weather any storm, you know? they employ so many people, and people love to eat there, and it's a great combination for america. >> look, it's a great indicator. megyn: they're down 1.8% worldwide, 2.2% in sales in america. >> yes, that's the frightening part here. it is a great indicator of where people are spending their money. worldwide, as you said, down 1.8%. that's bad, first drop in nine years. look more closely at america, and it's down 2.2% which means

america's economy is slowing perhaps more than the rest of the world. megyn: i don't get that, because when you don't have a lot of money, that's exactly where you go to eat. i mean, who didn't like, you know, every high school lunch, sadly, i ate there. it's a cheap place. so if their sales are down, does it mean people don't have as much money in their pocket? >> well, median household middle class income is down $4,300 in the last four years. your spending power is down because you've got $3.50 gasoline. yes, spending power is down. and presumably, it's places like mcdonald's that start to feel the pinch. this is new. we've not seen a mcdonald's sales slide before. now it's happening just as the rest of the economy is slowing. that's why it's such a worrying sign. megyn: what are the things we need to look for? i read an article that talked about we've got top eight economic issues we need to be focused on right now. one and two were europe and obamacare. >> okay. i would broaden that out.

key economic concerns, this fiscal cliff. get rid of the jargon for a second -- meg maine i'm sick of hearing about that. aren't we powerless over that? they're not going to take care of it until they decide they've got the political will to take care of it, and they just keep kicking the can down the road until they find it. >> i understand your anger, but listen, a fiscal cliff is a massive increase in taxes, big drop in spending. forget about the jargon. if you listen to the three statements of leading politicians in the last 48 hours -- that would be speaker boehner, harry reid and richard trumka -- they are suggesting, they are hinting about a deal to get rid of this fiscal cliff. it would be raise taxes now, promise to cut spending in the future -- megyn: oh boy. >> -- and don't worry about the deficit. megyn: you're telling me john boehner's going to agree to that? >> he's agreed -- he's saying, he's making con conciliatory nos that maybe we don't mind if we

get more money coming in from the rich. he wants to get rid of loopholes, but the effect is more money coming into the treasury. harry reid says tax the rich. trumka says don't cut entitlements, no, no, no, and don't worry about the deficit. you add that up, and that is a deal on the fiscal cliff, but the stock market doesn't like it, and the economy won't do well in it. that's the bottom line. megyn: all right. we'll see what they do with the fiscal cliff. they tried to fix it twice, twice they failed, now we're getting close to the deadline, and they're like, oh, we'll punt again. okay, fine. washington's going to do what it's going to do. what about obamacare? that, all sort of the bad stuff, if you will, of obamacare, the taxes, the penalties people are going to have to pay, they started in obama 2.0, and that starts in 2014. how big of an impact is that going to have? is. >> big. the re-election of barack obama means that you will get obamacare. governor romney was going to repeal it and replace it. well, that's not going to happen. obamacare is in place, and it's

going the move forward. that means all kinds of taxes start taking effect. there'll be a tax on generic -- not generic, i'm sorry, experimental drug companies. there'll be a tax on granny's hip and the new knee. there'll be all kinds of taxes introduced starting next year which will hit the economy. also the second term means that there's no messing around with financial reform, dodd-frank. that means the banks are going to take a huge hit. megyn: i want to talk to you about that. can we talk about the banks? because there's been some speculation that the banks haven't been lending and doing the things that banks normally do to help themselves and stimulate the economy because they were anti-obama. of and they wanted to hold their monies and hold that process until they saw whether he could be defeated. and so now that he has a second term, there's a question about whether they'll get back to normal. >> no. the banks have not been making as many loans as we would like them to make was demand for loans has not been strong. business doesn't see great growth in the future, so they're

not asking to borrow a lot of money. dodd-frank is going to cost the banks $34 billion a year in compliance. they've been saddled with hundreds of regulators sitting on their back making sure that every loan is absolutely perfect and contains no risk. you don't lend money in those circumstances. and now president obama gets a second term, no messing around with dodd-frank, it's in the place. that's it, it's a negative. megyn: stuart, thank you. >> you're welcome. megyn: it's great to see you. [laughter] well, among the immediate challenges facing president obama are the remaining questions about the murder of four americans in libya. coming up, congressman pete king joins us live on that. and new details on a mysterious plane crash over the summer. look at that. a bizarre series of events that ended with the crash of a jet into the side of a u.s. airport. >> i think in these odd circumstances when somebody is hellbent on doing whatever it is he was trying to do, a number of

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♪ megyn: we are getting reports of another big labor strike in greece after a dangerous night of riots. [gunfire] megyn: look at that. jeez, louise. rioters hurting fire bombs at police, more than a quarter of workers are now out of a job one day after the greek parliament approved a deeply unpopular -- say it together -- austerity package. new figures today show the unemployment rate in greece at 25.4%. that's more than 1.2 million out

of 10 million people that are now unemployed. even more troubling, 58% of all young people age 15-24 there are unemployed. ♪ megyn: well, a strange series of events unraveling in utah, and it all started with a plane crash over the summer. take a look at this newly-released surveillance video. you can see the plane plowing into a parking lot at st. george airport, and things only got more bizarre once investigators discovered who was behind the controls. ben winslow, a fox affiliate ktsu, has the latest. >> reporter: airport security cameras captured almost everything that happened when brian stole a skywest jet and crashed it into the st. george municipal airport. but police tell fox 13 their investigation resulted in no conclusion as to motive. hedgeland was wanted in connection with the murder of his ex-girlfriend in colorado. police say in the early morning hours of july 17th hedgeland

climbed over a fence and ran to the jet. a skywest pilot, he knew how to get in the plane, so police say he climbed in and started it up. but as you can see here, the plane clipped a sky bridge. the jet then throttled forward, scraping the side of the airport terminal. police told fox 13 at the time they had no evidence he was trying to steal the plane. >> i've looked at the crash scene, and it doesn't appear that he goes any other direction. he didn't make any movements to go towards the runways. he throttled it up and went right towards the parking lot. >> reporter: the plane barreled into the parking lot where it hit more than a dozen cars before stopping. police responded quickly to the incident. officers say the plane was still running with cars piled under it. officers say hedgeland was found dead inside the aircraft from a self-inflicted gunshot wound. megyn: wow. our thanks to ben winslow reporting from our fox affiliate

in utah nor that. well, president obama has not even been sworn in officially yet, but some say he is already a lame duck due to the partisan gridlock that's come to define washington over the past few years. we'll debate what may and may not happen in the coming weeks, next. plus, our most important ally in the mideast warning it will go it alone against iran if necessary. does it signal that israel and prime minister benjamin netanyahu think that we, america, do not have their back? we'll talk about what's likely to happen there with john bolton. and the can't-miss moment of the day. an american soldier just back from war finding one of the biggest challenges of all is simply waiting to surprise his little girl. their heartwarming reunion ahead. >> you never stop missing those who make your life complete. i'm nervous, like a first date. [ male announcer ] if you're eligible for medicare,

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these kinds of plans could save you in out-of-pocket medical costs. you'll be able to choose any doctor who accepts medicare patients. and you never need referrals. if you're thinking about your options, call today. when you call, request your free decision guide. and find the aarp medicare supplement plan that may be right for you. megyn: fox news alert, for the first time former congresswoman gabrielle giffords facing the man who shot her in the head. her husband, former astronaut mark kelly, speaking directly moments ago to the shooter, jared loughner. telling him that he changed the congresswoman's life forever but cannot change her spirit. the 24-year-old is awaiting his fate today after pleading guilty to the mass shooting in 2011 that wounded 17 and killed six. including a little girl. his sentencing could come at any

moment. we are told it is dramatic inside the courtroom as the victim impact statements are being offered. we know that he could face life in prison. in our next hour, we will have a live report from the courthouse. ♪ megyn: in washington president obama returned to the white house last night after securing a second term, but already a new editorial suggests that he is a lame duck from day one due to the gridlock in washington among other factors. arguing there is no political mandate. is that true? joining me now, michael graham, a radio host and a columnist with "the boston herald", and julie roginsky, former political adviser to frank lautenberg and a fox news contributor. so the washington times comes out with an editorial that says he has no mandate. they say that he is, pointed out that he's the first president since george washington to be

reelected with fewer popular votes than he was in the first term and say he's got no mandate. michael, true? >> uh, it's hard to see the mandate of a campaign that seemed to be focused almost entirely on whether or not the republicans were going to break into your home and steal your feminine hygiene products. so i can't really say he ran on this plan to do x, he's going to get it. but i don't think that means he's a lame duck. he has the power of the presidency, it's a very powerful tool. he's got the media, obviously, very cooperative. so let's just say he's a limping duck might be a better answer. megyn: is -- julie, your thoughts. because the point of the editorial is they say he was limping along already and that generally in the second terms presidents don't, you know, their power winds down, it doesn't build up. >> well, you know, i said well before this election happened that i really hoped whoever was going to win whether it was mitt romney or barack obama that the country recognized that the voters had spoken and that they

had given a mandate to whoever was going to get elected, whether it was obama or romney. it happened to be obama. he's the first person since ronald reagan to get a majority of the popular vote twice. nobody's done that since ronald reagan. i don't see how you can say he doesn't have a mandate after he won 313 electoral college votes, florida still outstanding. republicans don't realize that the past four years of tearing this president could be and obstruct -- down and obstructing an agenda, they don't realize that the american people have sent a message to them that this' not something that's acceptable, they're going to continue to lose elections. megyn: let me ask you if that's right, michael. it's only been two years of republican obstructionism because the democrats and barack obama controlled all three, you know, the house, the senate and the white house for the first term. >> megyn, please, don't confuse us with facts at this point. come on, after this campaign? here's what we've had for the

last 12 months. republicans are horrible! they're evil! they tried to destroy the president, and they've been at work with us -- they'd better work with us in the spirit of cooperation or else. this is absolute crap. there was a mandate. the people voted to return president obama, and they voted to return a solidly-republican house. the people who voted for gridlock, megyn, who are we to deny them? i say, speaker boehner, president obama, give america the gridlock we want. megyn: that's the thing, julie, is that the democrats controlled government for the first two years of obama's term, and then there's a reason americans sent all those republicans to congress in 2010, they wanted to stop some of the obama agenda. so then they stopped some of it, and we got gridlock, and then they decided on the exact same thing on tuesday. >> well, two things about that. number one, the republicans filibustered almost everything in the senate except -- >> didn't have enough votes. >> yes, they did except for 60 days -- >> excuse me, let me finish. this is not a radio talk show,

so let me finish. >> okay. >> they did not have except for a few months when the democrats had 60 votes, otherwise the republicans filibustered almost the whole thing. so to to the democrats were able to do whatever they wanted -- megyn: how did we get obamacare? there wasn't a single republican vote in support of it. >> we got obamacare because the republicans chose to not filibuster. but everything else -- >> what? [laughter] >> -- they chose to filibuster. i would love -- listen, what i'm hearing on the other side right now is keep it up. keep it up, and you guys will keep losing elections. because what the people have clearly said is that they do not support what the republicans have been doing for the last two years. >> when did they clearly say that? >> had they supported it except for the gerrymandered house districts -- >> ah, that's what it is, yes. >> you have the senate where you had democrats pick up seats, whoever would have thought a year ago the democrats were going to pick up seats in the

senate? you had barack obama winning every swing state but north carolina. megyn: two questions. number one, who's jerry hander? [laughter] just kidding. michael, i want to ask you about mandates because the popular vote, i didn't get in this made, but let me round, 60 million people voted for obama, 58 million people voted for romney. it is literally about a two million dollar -- two million-vote difference. >> right. megyn: so i realize that the two million is on the side of the democrats, but there are 58 million people in the country who wanted what the republicans want. and so in this kind of divided country could any president walk in right now with a mandate? >> absolutely. a president who ran on something, who said here's my affirmative goal other than raising taxes on millionaires and billionaires, that was the one thing he was clear on, he could run on it. but he didn't run on an

affirmative campaign. he run on the republicans are satan incarnate, and if women vote for them, they're going to be forced into rape camps. and when that's your campaign, you can't be surprised that the people you ran against don't want to work with you. i challenge my guests, name one thing president obama campaigned on that we could all rally around. give me one? >> well, many things that he ran on that -- maybe you can't rally around it, but the people certainly have, to uphold obamacare. people clearly sent a message about that. to have a fairer tax system, the people clearly sent a message about that. and so on and so forth. the man had a record to run on for the past four years. if the voters had rejected that record, he wouldn't be going back to the white house. but if you want to keep this up and talk about barack obama is an illegitimate president -- megyn: no one has said that. >> well, excuse me -- megyn: that's what they said about george bush when he was in power initially. >> george bush, if you want to go back there --

>> it always goes back to george bush. megyn: i don't really want to go back to that subject. >> was able to do a lot of things despite the fact he certainly did not win the popular vote. megyn: i do want to go back to jerry and why his parents when when -- when his last name was already mander -- [laughter] >> you are loving this joke. megyn: i know. i'm the only one. i'm a little tired. she's saying the republicans changed the lines of districts and gave them an electoral college advantage, and president obama lost certain votes because the lines of the maps were redrawn. you know, either party that's in power does it every time. i've gotta go. and that will conclude today's weird history lesson. [laughter] thank you, guys. >> thank you very much, megyn. megyn: see you. well, hours before tuesday's election, americas most important mideast ally warned that it will go it alone against iran if need be. ambassador john bolton is next

with a guide to the postelection reality in the middle east. and victims of hurricane sandy sharing new stories of unbelievable hardship. we'll look at the latest signs that the fallout is reaching katrina-esque levels according to some and why some of these victims could face criminal charges for returning to their own now-destroyed homes. >> temporarily you're not allowed to stay in your house. basically, if you have children, they're not allowed in the house. if the children come in the house for a t-shirt, they're going to call children's services on you. you're losing your house, your life savings, you lost everything you own, and there's no help.

megyn: well, we just heard that iran is set to flex its military muscle by conducting massive war games this weekend, but that comes on the heels of israel's prime minister, benjamin netanyahu, warning that israel's prepared to go it alone if it has to. now, he made those comments in israel just hours before our presidential election.

>> translator: if someone sits here as a prime minister of israel and he can't take action on matters that are cardinal to the existence of this country, its future and its security and he is totally dependent on receiving approval from others, then he is not worthy of leading. megyn: so what does that say about our relationship with our most important ally? john bolton is a fox news contributor and the former u.s. ambassador to the united nations. and he was accused by some of trying to manipulate our election and doing something that may not be particularly helpful to relations between israel and america when he came out and spoke like that, ambassador. your thoughts on whether what he said is true and its impact. >> well, i think he certainly believes it's true, and i think most israelis do as well. i mean, the timing was certainly provocative in a way, but he -- netanyahu didn't say anything different than what has been at the base of israeli national security doctrine since the modern state of israel was founded in 1948.

they don't depend on anybody else. having seen the consequences of waiting for their friends to come to the aid of the jewish people in europe while the holocaust was going on, israeli national security doctrine is we will defend ourselves at the last line. so i think what netanyahu was trying to say was he's not going to ask mother, may i from the united states whether it was romney or obama fundamentally. megyn: what, what level of concern do you think is appropriate now that we're in sort of obama 2.0 with respect to our foreign policy on israel and iran? because you had been sounding alarm bells about how the sanctions weren't going to do it, iran is moving towards a nuclear bomb, and if we don't step up the sanctions severely or do something else, you know, they're going to wind up with a nuke, or israel's going to act militarily? where do you see us now? >> well, i don't think anything has changed just because of our election on tuesday. i think the most likely outcome

in the middle east remains that iran will get nuclear weapons unless israel or the united states acts militarily. i see zero chance the obama administration will do that, so people are necessarily concentrating on israel. i think president obama will put merciless pressure on israel not to use military force. i think he will try to affect the outcome of the israeli election in january and do what he can to make sure netanyahu's not reelected. that could include a very public discussion with iran bilaterally, it could include behind-the-scenes pressure. but i think the stakes are very high here. megyn: i want to talk to you about that because another news item that came out not long before the election was this report not long before the third debate which was on foreign policy was that president obama was about to sit down, or there'd been an agreement tove h leadership at the top in iran, perhaps ahmadinejad. and the white house denied that

report. it was in "the new york times." and then we didn't really hear anything more about it. but this is something obama ran on first time around. he said i believe we should have one-on-one talks with our adversaries including iran. so what, you know, now that he's in his second term, doesn't have to face re-election, what do you think the likelihood is that president obama does that in. >> well, i think there's a high likelihood that he still thinks he can find a negotiated solution to the iranian nuclear weapons program. i think that's delusional, but aides and former aides have floated ideas that would allow iran to have a peaceful nuclear program. i use the word "peaceful" in quotes with more outside inspectors. i think that's the short road to iranian nuclear weapons, i i don't think there's anything in obama's performance in office that has shaken his view that he can find a deal with iran in there somewhere. and i don't think that the election really gives him a mandate. i mean, going back to your discussion with the other two

people a couple of minutes ago. i think most observers would agree there was essentially no discussion of foreign policy of any depth in the american political debate leading up to the election. so there can hardly be a mandate. i think obama's going to be very carefully scrutinized by people who are concerned that his policy's going to lead to a much more dangerous middle east. megyn: yeah. only something like 4 or 5%, low single digits, said that foreign policy was their number one motivator in the election in any way. ambassador john bolton, thanks for being here. >> thank you. megyn: well, after billions of dollars in advertising, direct mailing, research, etc., we wound up almost exactly where we were before the election. just ahead, what karl rove thinks this means for elections going forward. and a desperate plea from some of hurricane sandy's victims. we are live with their new worries, next. >> what are you guys going to do tonight? >> under lots of covers.

under lots of covers. i have five, six different layers of the stuff. i have a heart condition, i'm arthritic, he's diabetic. nobody cares. nobody cares. >> evacuate to where? i mean, to where? you're gonna go live with somebody else? everybody that we know is in this area. are you receiving a payout from a legal settlement or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today. but i'm still stubbed up. [ male announcer ] truth is, nyquil doesn't unstuff your nose. what? [ male announcer ] alka-seltzer plus liquid gels speeds relief to your worst cold symptoms plus has a decongestant for your stuffy nose. thanks. that's the cold truth!

megyn: a desperate plea for help after a powerful nor'easter slams into an already storm-ravaged region. folks in staten island, new york, begging for any assistance. look at this. signs like these being put up reading: obama, fema, help! and making matters worse, even more people being displaced today, the city placing yellow warning signs on homes telling

folks who have nowhere to go that they have to get out of the homes they are in. rick leventhal is there live. >> reporter: megyn, the building department's putting color-coded stickers on the doors. green means it's okay. we haven't seen any of those. red means uninhabitable, and most of the houses have the yellow signs on the door, restricted use. so they can go in to do construction work, and some people are stay anything their homes despite these yellow signs, but look at how much debris is still left in the street. the city has picked up 130,000 tons of garbage and debris, and there's still so much left to pick up. and this neighborhood, we're a mile and a half from the ocean, and the water was well over our heads, 12 feet high. we're going into lloyd dennis' home. he's ripping stuff out right now. whoa, sorry. hey, lloyd. megyn, i just want to show you, he lost all of his tools in a shed out back, so he's been using a box cutter and a

screwdriver, and he's got a tire iron of some kind to pull the floor boards up. lloyd, how -- you just bought this place four years ago. how challenging is this for you? >> it's rough. i have my family here, and, you know, my father-in-law, my daughter, my granddaughter, and they lost everything downstairs, everything. they have nothing, you know? and i give them a great deal -- appreciate their help, and i love them all, but it's hard on them. >> reporter: i know your neighbors were home during the storm. were you riding it out here? >> i was here, and the gentleman next door had called me and told me that, lloyd, the water's coming. i said, excuse me, jeff? we were all upstairs just relaxing, and next thing i know i see the water coming down and, of course, anybody else goes into a little panic. and we do, we try to do, but it was too late. by the time we even got ready, the water was already up to my steps. >> reporter: i know your neighbors were rescued by boat. you have insurance, do you think

you'll be okay? >> hopefully, like i said, i made all the necessary calls to fema and everybody and my insurance. it's just going to take time. >> reporter: any idea when your power will be back? >> no, sir. i got in a conversation with con edison, and they said they were going to try to get the outside lights on first because they shut off my meters and put a new belt on it, and once they get the brake on here and hopefully we'll find out, i've got to get an electrician first. >> reporter: good luck to you. such a tough road ahead, megyn, and they're just now beginning to assess the damages. megyn: lloyd, god bless. a lot of folks want to help. one of our favorite charities, tunnels to towers.org, has a separate part that will help you help victims of this storm. well, new concerns today that the racial divide among americans is growing after some postelection polls show that minorities overwhelmingly went with president obama and white voters overwhelmingly for governor romney. what are the two parties going to do about that? and he spent two tours in afghanistan fighting for our freedom.

now he's got the surprise of a lifetime in store for his loving family, and you will see it. >> you never stop missing those who make your life complete. i'm nervous, like a first date.

megyn: fox news alert on the delicate dance in washington over what happens next in the nation's capital. there are some major items on the second term to-do list and the challenges are enormous. some top priorities include the fallout from the benghazi situation. the dire situation in syria, iran and its nuclear efforts and immigration reform just to name a few. ed henry joins us live from the white house. >> reporter: they may be in celebration mode still. after the euphoria of victory the president taking

congratulatory calls from 13 leaders who have called in the last 24 hours saying congratulations. but that euphoria giving way to a lot of challenges on the world stage and the domestic as well. the fiscal cliff is bubbling up quickly. while you have democratic leaders suggesting they have a strong hand in the negotiations and they will cooperate with republicans. you have republicans saying if the president raises taxes in these negotiations it could blow up on democrats. take a listen. >> i'm going to do everything within my power to be as conciliatory as possible. i want to work together, but i what everyone to also understand you can't push us around.

>> i think it will require tax increases on the wealthy. the wealthy are the people who hire everyone else. you can't love jobs and hate job creators, martha. he hates job creators. >> reporter: the response from the white house has been the president put those tax increases on the table in the election. he's going to push ahead with that agenda. on international front you mentioned benghazi. the president next week will be facing several hearings coming up precious for answers. and you have republican leaders saying they believe they were stonewalled in the days leading up to the election. the administration says they are cooperating as much as they can but that confrontation will start once these house and senate committees start bringing up witnesses including secretary of state hillary clinton. megyn: it's a bipartisan effort in the senate to get to the

bottom of things. you just heard majority leader reid who said one of his top priorities will be changing the rules of the senate. mr. reid plans to try to make it more difficult for the minority party to block legislative business by changing the way the filibuster works. >> rules have been abused, and we are going to work to change them. we are going to do away from the filibuster and make the senate a more meaningful place so we can get things done. megyn: it, very dangerous to mess with the filibuster rules. even if you are a democrat and enjoying majority in the senate. some day the lup cans will have control as well, then mr. reid and others like him might regret getting rid of the filibuster or hobbling it. the current rules require 60 votes to move beyond the delay

tactics. you need 60 votes to get a meaningful substantive vote. you can to be the vote if the. >>er party candidates if you have less than 0 votes. mr. reid says that tactic is unrealistic regardless of who is in charge. new developments in the search for answers in connection with the benghazi terror attack. the obama administration agreeing to send some of their top intel people to testify at a closed hearing where they will try to get to the bottom who knew what and when once and for all. congressman pete king is the chairman of the committee. he's a republican. >> i'm the chairman of homeland security. but i'm on the committee and

i'll be at the hearing. megyn: we are getting some heavy hitters to appear for the intel committee including cia chief david petraeus. the director of national intelligence james clapper and matthew whole on who already testified on capitol hill. he was the first one to say this was terrorism. then recordsr reports came out he -- then reports came back he was told to dial that back. the administration was not happy he said it the way he said it. what do you think you will get at in this hearing? >> there is a lot we have to get at. from day one i believe the administration has not been honest with the american people, not honest with the congress. they were saying this was caused by a video. they are saying it is a spontaneous demonstration. clearly this was not the case. despite what the president was trying to claim later on. he denied it was a terrorist attack for 10 days. jay carney repeatedly tried to

deny the fact. megyn: we know those facts happened. but when you have access to petraeus, testifying before you, what are you going to ask him? >> exactly was he in contact with the state department that night, what was he told, what information was he told. what did his cia station people in libya tell him. why did he come forward with this version that involved a video. what was that based on in view of the fact we know that night people at the compound in benghazi were saying this was a terrorist attack. why were these people on the ground saying one thing and why was he and the administration officials saying something else. we have to get the whole time line as to what they were told, when they were told and why they came up with the story in the first place. megyn: clapper is the one who copped to his group, we are the

ones who gave the white house the talking points memo that spoke of a video. to this moment do we know why he did that? what specifically he was basing that on? >> the reason we look at the memo carefully, it was put out by a spokesman for general clapper. there is a distinction there. he was trying to put distance between himself and the memo. who pressured him to do that. also the talking points. who told him to put those talking points together in the first place? who cleared hose talking points? were they refined? were they changed? were they amended? was there any keep of collusion between the administration and the white house and also those in the intelligence community who are suppose to be non-political and totally political. megyn: you have got access to the people who would have been

talking to them. also i imagine you want to talk to petraeus about the cia and whether they did say no to the demands for help that were being made by the cia operatives. the security guys. saying let us go over and help the ambassador. they claim -- our sources claim they were told no, don't know, don't know, then at least one of them went anyway. i want to ask you this. is there any restriction -- when you have got access to petraeus, clearp, matthew olson, can they refuse to answer your question on some if ground? >> they should not. the intelligence committee is supposed to get full access to all the information they have. if they try to claim executive privilege, we are not looking for a fight. we just want the information. i have great regard for general

patraeus and general clapper but something went wrong here and it seems like there was influence coming from outside and that should never happen when dealing with the intelligence communities and to me the on place it could have been coming from was the administration itself. megyn: we'll find out as you continue to probe into a disturbing story. mr. chairman of the homeland security committee, thanks for being here. all the best, sir. after billions of dollars in advertising, direct mailing, rallies, when wound up almost exactly where we were before election day:president obama in the white house and the democrats holding the senate and the republicans holding the congress. karl rove is live here three minutes away. emotional testimony at

sentencing. take this guys picture off. no one wants to look at him. you know who it is. his name is jerrod laughe lough. today survivors of that tragedy are getting their first chance to confronts him face to face. a bad sign for victims of superstorm sandy. thousands of folks without gas, heat or food left out in the cold yet between. >> it's insane. okay? i have been 10 days now and now i'm shoveling snow. >> and you still don't have power. >> no. no power, no gas, no nothing. >> it's freezing, are you going do tonight? >> under lots of covers. i have five, six different layers worth of stuff. i have a heart condition.

i'm art are you particular. he's diabetic. nobody cares. nobody cares.

megyn: the pentagon confirms iran has fired an unmanned u.s. predator drone that was flying in international air space back on november 1. we are told that it was a u.s. predator drone that was flying 16 miles off the coast of iran in the arabian sea. the pentagon says it was an unarmed -- unmanned drone that was carrying out routine surveillance of the sea lanes there. no reaction from the white house. our jennifer griffin is at the pentagon and will join us live in moments. billions of dollars in advertise. thousands of phone calls. countless rallies later and washington is pretty much where it was before election day.

many polls suggested there would be a republican win tuesday. but when the dust settled the gop lost the presidency and a few senate seats slipped away. governor romney was able to take north carolina. and indiana. states mr. obama won in 2008. florida is still yellow because we don't know who won there. the question is, what happened? what happened? joining me with his thoughts. karl rove. former chief of staff to george w. bush. he is the man who saw george w. bush win two president is and is called the architect for helping make that happen. there has been a lot of talk on shifting demographics in the country in terms of black voters, latino voters, young voters, more women siding with the democratic party. i want to get your thoughts as

the electoral expert, what happened? >> let's put this in context. president obama got nearly 7.8 million fewer votes from whites than he did four years ago. he also got -- this will surprise you -- he got 1.6 million fewer african-american votes. 1.8 million fewer millennials, and 4 million viewer votes from women. we had a disappearing electorate. four years ago obama won 69.9 million and now he's at 60.6. his margin over john mccain was 9.9 million. this us date was 2.9. he had a 7.2% margin over john mccain and a 2.1% margin over mitt romney. he becomes the first president getting a smaller share of the vote than he got in his first

term. jim me seasonna gave a series of interviews where they said we are not going to be able to get where we need to get vick fly by talking about what you have done and painting a pretty picture of what you achieved. we have to go after romney's wealth, business experience and character with early advertising to drive up his negatives. this is a grand bet it's a dangerous strategy. because fit doesn't work out we won't have enough time or money to try something else. the president said go do it. they proceeded to slam romney in the summer. and what we have is a disappearing electric rats. we'll have 10 million people vote in 2012 than 2010. this is the first election in four previous elections where the share of the voting age population will decline, not

increase. megyn: there has been soil searching in the republican party to diagnose the loss and try to prevent them. there are some saying the republican party, the conservatives need to shift to the middle. they have to get that 2 million or 3 million folks that didn't vote for them and the way of doing that is to shift on the middle on their principles. what say you? >> i don't agree with that. i think the republicans lost in this election because of two things. the obama campaign was very effective in keeping roughly 92% of the people who voted for president obama to vote for him again. but they didn't do a good job of growing the electorate. their margin is down million. and they cut their winning percentage over romney by 2/3 over what it was over john mccain. both parties have challenges. the only gripe they got more votes this time around than four years ago were among latinos.

700,000 more latinos voted the democratic than the year before. the president succeed by suppressing the vote. by saying you may not like who i am and i know you can't bring yourself to vote for me but i'm going to paints this other guy as arich guy who only cares about himself. 53% of the people on election say say romney's policies will only help the rich. they said the most important characteristic was he cares about people like me. they vote for obama by a 9-1 margin. they denigrated mitt romney's character and business experience. megyn: what do you do about that? the successor to the democratic party is not likely to take it easier on the republican opponents. >> don't have the attitude if

you are respond you are losing. president obama outspent mitt romney on television by $154 million. that's a lot of television. we saw this in the senate raise. democrat candidates for the senate raised $60 million more than their republican opponents. the democratic senatorial campaign committee outraised the republicans by $20 million. megyn: one of the mistakes that some are chalk up to the gop side to mitt romney is not fighting back harder when he was maligned for his bain experience in the early month of the sumner june and july. you have a group, american crossroads that helped to try to advertise on behalf of mitt romney and on behalf of republicans. do you feel that was responded to aggressively enough early on? >> in retro expects yes. the first group to respond on

attacks on bain capital was not the romney campaign. it was americans crossroads. we don't do defense all that way. the most effective ad for president obama where he appeared on camera was after july when he said if you have got a business you didn't build that. it went on television, looked into the camera and said they are distorting what i said, of course you built. we are all in this together, it's all about us building a middle class that can last. sometimes the most effective response in politics is to respond directly to the charge. and flip the argument back to your overall narrative. in retrospect these things hurt deeply. we had -- there was so much enthusiasm. i can understand why president obama got fewer votes because people were turned off by his record. but for mitt romney to get 2 million fewer votes than john mccain said there were a lot of people, those obama whites that supported him last time around

and 1.6 million african-americans that supported the president last time around. they could have been persuaded. megyn: i want to talk to you about whether this was a things after this break. diarrhea, gas, bloating? yeah. one phillips' colon health probiotic cap each day helps defend against these digestive issues with three strains of good bacteria. approved! [ female announcer ] live the regular life. phillips'. or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today.

megyn: fox news alert. two big storiesing. the pentagon has confirmed that iran fired on an unmanned u.s. drone flying in international air space on november 1. fashion security correspondent jennifer griffin will join us in moments. in arizona we just got word the man who shot congresswoman gabrielle giffords and killed 9 people was sentenced to 7 life terms in prison. we are live at the courthouse just ahead.

back now with karl rove. i want to ask you whether this election could have been won if the republicans had chosen a different candidate. a lot of folks look at the man himself. too moderate. he couldn't go after obama hard enough on healthcare given his own history in massachusetts. et cetera. >> this is what's even of iably do to a -- this is what we do to a candidate who loses. who would have those would be 3 or 4 points down in the first debate. you come out swinging and make this a horse race. president obama has become the first president in history to win a second term with a smaller percentage of the vote than he did. megyn: you keep saying that but he won. that's what the republicans and democrats care about. >> every candidate looks perfect on paper. during the primary season we had

all these candidates. everybody looks great on paper. but it's only the man -- theater roosevelt talks about the man in the arena. and the man in the arena was mitt romney and he gave it his all. we can look back and say we should have done this or that but to suggest this could have easily been won if when had somebody else, i don't buy that. but you have to respond. when your other side says our strategy is to make the republican candidate unacceptable even to the points of knowing we are going to suppress the vote. we had a campaign strategy deliberately designed to so turn off people even if they disagreed with barack obama they could not bring themselves to vote for the other guy. megyn: fight back earlier. >> also we have a problem with latinos. this is the only group he got more votes from this time around

than last time around. we need to do more with young people and the changing diversity of americans. president obama lost strengths among women. megyn: how do you recruit groups like that. >> you make certain you have people who represent those communities in leadership of your party. here in texas we routinely get 40% of the latino vote because we have a lot of latino republicans in the leadership of our party month make sure they are conservative, we are conservative but they make sure the arguments are made in the hispanic communities with voices to which they will pay attention. we have lots of local elected republican officials who are latinos and they make the arguments in a persuasive way. it's hard to have ag -- to have anglos make the argument. we elected president the first hispanic senator to represent texas an, a republican.

ted cruz. we failed to re-elect one of our two hispanic republican congressmen. but across the state we elected hispanic officials because this party in this state knows the importance of our shared communities of texas and everybody has to have a shot. we reelected an african-american republican state representative in a district that's overwhelmingly white. why? because we are a diverse party that believes in that kind of thing. megyn: it's nice to have the diagnosis. we appreciate you being on, karl, thank you so much. >> now you will get me in trouble with doctors. megyn: it's great to have him. i want to bring you back to arizona. a judge moments ago sentenced jerrod loughner to 7 life terms.

her husband astronaut mark kelly among those who addressed loughner directly in court telling him to pay attention and dan springer is live from tucson, arizona with that report. >> reporter: court just just adjourned and it was emotional and powerful as the victims of that horrific shooting spree in january of 2012 got to speak directly to that killer jarrod loughner. he showed no emotion or reaction. but his parents sitting in court cried. the last victim to speak was mark kelly. she stood next to him as he told loughner that gabby would trade her own life for any of the six who were murdered. she was shot in the head and part of her brain was removed. giffords was an inspiration when she came back to the house floor to cast a vote and at the

democratic convention when she led the pledge of allegiance. but today her husband said every day is a struggle. every sentence is difficult. so is walking. he said loughner may have put a bullet through her head but he did not don't her spirit. he concluded by saying from this moment on gabby and i are done thinking about you. he told loughner he attacked democracy that day. a federal judge and aide to giffords and a 9-year-old girl. loughner pled guilty to 19 charges. he avoided the possibility of the death penalty by agreeing to serve life in prison with no chance for parole. court just broke up, and we'll be having a news conference with some of those victims including gabby giffords coming up in a half-hour. megyn: dan, thanks so much.

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megyn: the pentagon confirmed iran fired on an unarmed predator drone that was flying in international air space. the pentagon says that drone was

carrying out routine surveillance when it came under attack. jennifer griffin live with the breaking news at the pentagon. >> reporter: they said it was routine surveillance but it was also a classified mission. the drone was in international air space when it was fired on by two iranian su-25 aircraft. they fired two times at the u.s. predator drone it was unarmed and unmanned. it was november 1 at 4:50 a.m. in the morning eastern time. it was flying 16 nautical files off the coast of iran in international waters between iran and kuwait over the arabian sea. the drone was carrying out a routine surveillance mission much the maritime straits according to pentagon spokesman george little.

>> the u.s. limit aircraft conducting routine surveillance was intercepted by iranian aircraft and was fired upon with guns. the incidents occurred over international waters. approximately 16 nautical miles off the iranian coastline. the mc-1 was not hit and returned to its base safely. >> reporter: the pentagon says it did not release information about this drone and the iranians firing on the drone, it's the first time ever a u.s. drone has been fired on by iranian fighter jets. they say they didn't release information on it last week in the days before the election because it was on quota classified mission. the u.s. government has protested to iran through the state department and the swiss delegation that represents the u.s. inside tehran. megyn: the class fried mission is now over? it's only a week later. >> reporter: the reason this came out is because of news

reports. cnn broke the story moments ago and the pentagon was forced to react to it in the briefing a few minutes ago. the reason they did not talk about this or reveal information on it last week is the drone reportedly was flying on a classified mission. the pentagon claim the drone did not cross into iranian air space. about it was on a classified mission, megyn. megyn: if you wouldn't mind sticking around for us. in about five minutes we got ambassador bolton to come back. he was here with us last hour. he's on his way back to the studios. we may have some more questions we could ask you. i would appreciate it. stand by. we'll get this political panel in. but we are going back to bolton and gender on this breaking news in moments.

there are new questions about the 2012 election results and america's shifting demographics. the exit polls and voter surveys show a deepening racial divide at the voting booth. it's raising questions about the republican party's strategy and whether they need to claingt. joining me, juan williams and rich lowry. juan, you have written an interesting piece about this. you call it obama's daunting demographic message for the gop. tell us what you are seeing in terms of this electorate and its changing nature. >> there was a lot of controversy about the polling going into this race. the basis of that was that a lot of the republican pollsters said we don't believe that the 2008 electorate is going to be recreated in 2012. that's all the young people, all the minorities who were so enthusiastic about a first-time

african-american candidate. they are not going to come back to the polls give knowledge the high rate of unemployment, given the low approval ratings for president obama. but guess what? they came back and they have formed a coalition that looks like it could be permanent and really would create a threat to republicans. it could make republicans an afterthought in future elections if they don't find a way to reach out to young people, and hispanics, the fastest growing minority group in the country as well as the black. megyn: the stats prove that. what does the republican party do about that? >> i don't think they prove that. i think the most fascinating -- meg will be rom write did better with whites and older men and obama did better with women and minorities. >> sean trend, what respected election analyst posted this morning on real clear politics. he crunched the absolute

numbers. and the numbers he's coming up with say there are 7 million fewer white voters in 2012 than there were in 2008. which sort of runs countser to the entire post-election conversation. it doesn't mean juan isn't right about the long-term trend. but it does suggest the story coming out of this election may be different than everyone thought which is the failure of mitt romney to reach more of his voters than anyone would have thought. in other words, the way the electorate may actually have been different than 2008 was white voters weren't there. megyn: that interesting, juan, what do you think? >> we have seen a decline in white voters as a percentage of the overall electorate. >> this is percental terms, this is absolute numbers. >> in terms of the percentages first. the question would be then why? but i don't think it takes away from the larger point i was

trying to make that the republican party has got to do something to mitigate the losses especially in a fast-growing segment like latinos that voted 71%. they are adding registered voters and republicans having no success. in fact making his andics feel like you are not welcome here. we are anti-immigrants, anti-immigration. megyn: mccain did better with hispanics than romney. it begs the question of whycan'r with people of color and women and so on. >> a couple things on the latino vote. one, it's true that the party's tone has been off. i basically support the romney immigration policy but when he said self-deportation in that debate it made even me wince. the problem is, it's not as

simple as immigration policy. the republicans could endorse the dream act tomorrow and they would never get to the left of democrats on the issue. megyn: why did george bush do well with latinos. >> he was a border state governor. he didn't have the tonal problem i'm talking about. but if you look at john mccain, famous advocate for amnesty. he barely did better than mitt romney. if you look into the polling. there was a big hole of hispanic voters, they were asked if the republicans supported the dream act, 31% said yes. basically the problem is a lot of these latino voters are just liberals. you ask them where they are ideologically and they are at a different place than the republican party. megyn: how does the gop make them not liberals? >> i just think you have to reach out. i think it goes beyond

immigration. the value, the entrepreneurship, family, catholic, very religious people. that makes them a target for republicans if republicans would do the work. megyn: thank you. more on iran next.

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we're more than 78,000 people looking out for more than 70 million americans. that's health in numbers. unitedhealthcare. megyn: more on our breaking news out of the pentagon as it confirms iran fired on an unarmed u.s. drone on move 1. the unmanned predator drone was apparently conducting routine surveillance 16 miles off the coast and the attack marks the first time ever a u.s. drone has been fired upon by iranian fighter jets. we asked john bolton our former ambassador to the united nations to come back and he did. and back with us is our national security correspondent jennifer griffin live at the pentagon. jennifer you said the first time it happened within the drone was doing routine maritime surveillance. it wasn't hit. does the pentagon say this was an act of war?

>> reporter: the pentagon wouldn't go there. george little was asked that question during the briefing and he said he wouldn't get into quote legal characterizations, but it's the first time an american drone has ever been fired on by iranian aircraft fighter jets and it was in international waters. fit was 16 miles off the coast of iran. it's important to point out this was a classified mission that suggests that while the pentagon may say the was routine surveillance of the maritime straits, it was a classified mission. megyn: ambassador? your reaction. >> reporter: the iranians have gotten at least one other american drone. they claim they show it down we claim it landed by malfunction. they are obviously intending to show they are prepared to use force to brush us back. i think although the timing of this was before the election, i think there is something to the

proposition that the iranians are trying to show to the united states that any use of military force against their nuclear program would not go unattended. megyn: there is any understanding about whether the iranians intended to bring this thing down or were shooting but mission intentionally to sort of put a thumb in our face? >> it's a good question. u.s. military intelligence isn't sure if the iranian fighter jets, whether they missed because they were a bad shot or whether they were warning shots. i think they were taking the shooting pretty seriously. and they missed. and also to add to what ambassador bolton said. the central drone that went down inside iran was flying on a classified mission and it had crossed in. this is the one months ago that was brought down for somehow

inside iran. that was a very big loss for the pentagon it was a stealth drone, and it was on a classified mission inside iran taking a look at some of iran's nuclear sites. >> do you believe that this was not disclosed, ambassador because it was a classified mission? is there any reason to doubt that was the reason given this happened a couple days before a presidential election? >> not clear why it's come out now. but i do think that we have got -- i hope anyway lots of drones inside and outside iran looking at their nuclear operations, their ballistic missile programs. the disposition of their forces. nobody should be surprised that we have got drones and other equipment up there. i would think that the iranians did want to shoot this down and if they could capture it and use it for their own purposes. megyn: jennifer mentioned we protested the incidents.

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megyn: the news that an unmanned u.s. predator drone was shot at, about it was not hit. we protested the incidents. what does that mean? >> it means the state department through the swiss delegation that represents the u.s. in tehran. u.s. doesn't have an embassy in tehran. hasn't had one since 1979. so the state department protested saying this drone was flying in international waters

when the two fighter jets fired at it. megyn: is that what we are supposed to do? >> the swiss are protecting power in tehran. i'm sure it was a stiff note by the state department. if you don't like this kind of behavior from iran now, assuming our drone was in international air space. just imagine way it's going to be like when iran gets nuclear weapons. megyn: are they just trying to provocative with this? >> they are trying to show they are ready. they don't like this surveillance. i think they are worried more about israel taking military action, preemptive military action against their military program and they would love to bring down another american drone. it would be a proper began today coup for them if they could. it has the side benefit of increasing tensions in the persian gulf. i'll bet the oil traders are bidding up the price of petroleum on the international

market. that's another plus for iran as well. megyn: this juan was in international air space versus iranian air space? >> that's what the pentagon says. the rq-170 sentinel hat went down in 2011, that went down over iranian air space and it was he eventually learned from u.s. officials, it was monitoring iran's nuclear sites. megyn: this is a more significant attempt because you are allowed to be in the international air space. thank you both. jennifer. ambassador. we appreciate you being here and we'll be right back. don't go away.

>>megyn: it was sad we had to cancel kelly's court because of breaking news on iran and the studio. look who is here in the studio. mark was ready to argue. thank you for all